RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:CDN$40 Million VAT + $35 Miilion Black Fox to Pay the DebtI dont know that much about the history of the stream. Goldcorp and its cozy relationship with Silver Wheaton seemed to result a more affordable stream that allowed spot tax to be paid. Also im fairly sure Goldcorp was in a better financial position to take the hit on the spot rate and amortize the higher expense against income tax over the years. Thats all good if stream isnt outragious.
P paid too much out the gate for san dimas and got sucked into a loan shark type stream hoping it could mine its way out of the deficit. And maybe they could have if firing on all cylinders and not distracted by other mine losing money. Regardless, paying the current stream and spot tax appears untenable. All this with the bonus round of a hardcore union and potential tax penalties.
Mexico now holds the cards imo. Canada is real irratated with Wheaton and the way they avoid taxes. I believe Mexico is just jumping on that bandwagaon and with penalties could leave current owners or creditors on hook for a pile of cash. Im not real sure what their motivation or endurance is but they may be about done or just getting warmed up. This could take years and no one really knows the final verdict ....No one really knows if they want P in the game or not, if their main motivation is to screw W, all hard to say. But who wants to stir the hornets nest without buy in from mexico? That would be ironic if san dimas did come back to rob mcewen. We will see